SAN JOSE, Calif. — (BUSINESS WIRE) — May 3, 2012 —
Immersion Corporation (NASDAQ:
IMMR), the leader in developing and
licensing
touch
feedback technology (
http://www.immersion.com/corporate/),
today reported financial results for the first quarter ended March 31,
2012. In a separate press release issued today the company also
announced that it has appointed Paul Norris as Chief Financial Officer,
effective May 14, 2012.

Total revenues for the first quarter of 2012 were $9.7 million, down 1%
as compared to $9.8 million for the first quarter of 2011. Royalty and
license revenues totaled $9.1 million for the first quarter of 2012, an
increase of 9% as compared to $8.4 million for the same period last
year. Net loss for the first quarter of 2012 was $(219,000), or $(0.01)
per share. This compares to net income of $1.4 million or $0.05 per
share, for the first quarter of 2011. Adjusted EBITDA for the first
quarter of 2012 was $1.6 million, as compared to $3.3 million in the
first quarter of 2011.

“Immersion posted strong results for the first quarter. Royalty revenues
of $9.1 million grew 9% over the same period last year, and we achieved
solid Adjusted EBITDA based on our scalable, high-margin licensing
model, despite increased litigation expenses,” said Immersion CEO Victor
Viegas. “We continue to be encouraged by the rapid adoption of haptics
in the mobile market, and remain focused on delivering innovative new
product solutions while protecting our intellectual property in the
interests of our shareholders, partners and customers.”

“Based on our current outlook, we are reiterating our expectations for
fiscal 2012 revenues to be in the range of $34 to $36 million, an
increase of 11% to 18% from the prior year, and to achieve positive
Adjusted EBITDA for the year,” concluded Mr. Viegas.

As of March 31, 2012, Immersion’s cash, cash equivalents, and short-term
investments were $57.6 million, compared to $56.3 million as of December
31, 2011.

Corporate Highlights

Immersion recently:

On March 2, 2012, added HTC Corporation and certain of its affiliates
to the complaint with the U.S. International Trade Commission and in a
separate patent infringement complaint in the U.S. District Court in
Delaware alleging that certain HTC Android-based smartphones infringe
six Immersion patents that cover various uses of haptic effects in
connection with touchscreens.

Saw DOCOMO successfully launch a new MEDIAS tablet and smartphone
using Immersion technology into the Japanese market from NEC CASIO
Mobile Communications and NEC.

Saw additional applications designed by numerous third party
developers that incorporate haptic effects by using Immersion’s SDK.

Conference Call Information

Immersion will host a conference call with company management on
Thursday, May 3, 2012 at 2:00 p.m. Pacific time (5:00 p.m. Eastern time)
to discuss financial results for the first quarter ended March 31, 2012.
To participate on the live call, analysts and investors should dial +1
877-941-4775 at least ten minutes prior to the start of the call. A
replay of the call will be available until 11:59 p.m. Pacific time on
May 10, 2012 by dialing +1 800-406-7325 and entering the passcode
4533410#. A live and archived webcast of the conference call will also
be available for 90 days within the investor relations section of
Immersion’s corporate Web site at
www.immersion.com.

Founded in 1993, Immersion (NASDAQ:
IMMR) is the leading innovator in
haptic technology; the company's touch feedback solutions deliver a more
compelling sense of the digital world. Using Immersion's high-fidelity
haptic systems, partners can transform user experiences with unique and
customizable touch feedback effects; excite the senses in games, videos
and music; restore "mechanical" feel by providing intuitive and
unmistakable confirmation; improve safety by overcoming distractions
while driving or performing a medical procedure; and expand usability
when audio and visual feedback are ineffective. Immersion's TouchSense
technology provides haptics in mobile phone, automotive, gaming, medical
and consumer electronics products from world-class companies. With over
1200 issued or pending patents in the U.S. and other countries,
Immersion helps bring the digital universe to life.

Use of Non-GAAP Financial Measures

Immersion reports all financial information required in accordance with
generally accepted accounting principles (GAAP), but it believes that
evaluating its ongoing operating results may be difficult to understand
if limited to reviewing only GAAP financial measures. Immersion
discloses this non-GAAP information because it is useful in
understanding the company’s performance as it excludes non-cash and
other special charges that many investors feel may obscure the company’s
true operating performance. Likewise, management uses these non-GAAP
financial measures to manage and assess the profitability of its
business. Investors are encouraged to review the related GAAP financial
measures.